State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-70-20

§ 58‑70‑20.  Bondrequirement.

(a)        As a conditionprecedent to the issuance of any permit under this Article, every applicant fora permit shall file with the Commissioner a bond in favor of the State of NorthCarolina that is executed by a surety company licensed to transact suretybusiness in this State. The bond shall be maintained in force during the permitperiod, continuous in form, and remain in effect until all moneys collectedhave been accounted for. The bond shall expressly provide that the bond is forthe benefit of any person, firm or corporation for whom the collection agencyengages in the collection of accounts. The bond shall be in the amount of tenthousand dollars ($10,000) for the initial permit. The amount of the bond forany renewal permit shall be no less than ten thousand dollars ($10,000), normore than seventy‑five thousand dollars ($75,000), and shall be computedas follows: The total collections paid directly to the collection agency lesscommissions earned by the collection agency on those collections for thecalendar year ending immediately prior to the date of application, multipliedby one‑sixth.

(b)        A person requiredby this section to maintain a bond may, in lieu of that bond, deposit with theCommissioner the equivalent amount in cash, in certificates of deposit issuedby banks organized under the laws of the State of North Carolina, or anynational bank having its principal office in North Carolina, or securities,which shall be held in accordance with Article 5 of this Chapter. Securitiesmay only be obligations of the United States or of federal agencies listed inG.S. 147‑69.1(c) (2) guaranteed by the United States, obligations of theState of North Carolina, or obligations of a city or county of this State. Anyproposed deposit of an obligation of a city or county of this State is subjectto the prior approval of the Commissioner.

(c)        In addition to therequirements of subsections (a) and (b) of this section, as a conditionprecedent to the issuance of any permit under this Article, every nonresidentapplicant for a permit shall file with the Commissioner a bond in the amount often thousand dollars ($10,000) in favor of the Department that is executed by asurety company licensed to transact surety business in this State. The bondshall be maintained in force during the permit period, be continuous in form,and remain in effect until terminated by the Commissioner. The bond shallexpressly provide that the bond is for the purpose of reimbursing theDepartment for expenses incurred in visiting and examining a nonresidentcollection agency in connection with a federal bankruptcy or State receivershipproceeding in which the collection agency is the subject of the proceeding. (1943, c. 170; 1959, c. 1194,s. 3; 1979, c. 835; 1991, c. 212, s. 4; 2001‑269, s. 1.3.)

State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-70-20

§ 58‑70‑20.  Bondrequirement.

(a)        As a conditionprecedent to the issuance of any permit under this Article, every applicant fora permit shall file with the Commissioner a bond in favor of the State of NorthCarolina that is executed by a surety company licensed to transact suretybusiness in this State. The bond shall be maintained in force during the permitperiod, continuous in form, and remain in effect until all moneys collectedhave been accounted for. The bond shall expressly provide that the bond is forthe benefit of any person, firm or corporation for whom the collection agencyengages in the collection of accounts. The bond shall be in the amount of tenthousand dollars ($10,000) for the initial permit. The amount of the bond forany renewal permit shall be no less than ten thousand dollars ($10,000), normore than seventy‑five thousand dollars ($75,000), and shall be computedas follows: The total collections paid directly to the collection agency lesscommissions earned by the collection agency on those collections for thecalendar year ending immediately prior to the date of application, multipliedby one‑sixth.

(b)        A person requiredby this section to maintain a bond may, in lieu of that bond, deposit with theCommissioner the equivalent amount in cash, in certificates of deposit issuedby banks organized under the laws of the State of North Carolina, or anynational bank having its principal office in North Carolina, or securities,which shall be held in accordance with Article 5 of this Chapter. Securitiesmay only be obligations of the United States or of federal agencies listed inG.S. 147‑69.1(c) (2) guaranteed by the United States, obligations of theState of North Carolina, or obligations of a city or county of this State. Anyproposed deposit of an obligation of a city or county of this State is subjectto the prior approval of the Commissioner.

(c)        In addition to therequirements of subsections (a) and (b) of this section, as a conditionprecedent to the issuance of any permit under this Article, every nonresidentapplicant for a permit shall file with the Commissioner a bond in the amount often thousand dollars ($10,000) in favor of the Department that is executed by asurety company licensed to transact surety business in this State. The bondshall be maintained in force during the permit period, be continuous in form,and remain in effect until terminated by the Commissioner. The bond shallexpressly provide that the bond is for the purpose of reimbursing theDepartment for expenses incurred in visiting and examining a nonresidentcollection agency in connection with a federal bankruptcy or State receivershipproceeding in which the collection agency is the subject of the proceeding. (1943, c. 170; 1959, c. 1194,s. 3; 1979, c. 835; 1991, c. 212, s. 4; 2001‑269, s. 1.3.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-70-20

§ 58‑70‑20.  Bondrequirement.

(a)        As a conditionprecedent to the issuance of any permit under this Article, every applicant fora permit shall file with the Commissioner a bond in favor of the State of NorthCarolina that is executed by a surety company licensed to transact suretybusiness in this State. The bond shall be maintained in force during the permitperiod, continuous in form, and remain in effect until all moneys collectedhave been accounted for. The bond shall expressly provide that the bond is forthe benefit of any person, firm or corporation for whom the collection agencyengages in the collection of accounts. The bond shall be in the amount of tenthousand dollars ($10,000) for the initial permit. The amount of the bond forany renewal permit shall be no less than ten thousand dollars ($10,000), normore than seventy‑five thousand dollars ($75,000), and shall be computedas follows: The total collections paid directly to the collection agency lesscommissions earned by the collection agency on those collections for thecalendar year ending immediately prior to the date of application, multipliedby one‑sixth.

(b)        A person requiredby this section to maintain a bond may, in lieu of that bond, deposit with theCommissioner the equivalent amount in cash, in certificates of deposit issuedby banks organized under the laws of the State of North Carolina, or anynational bank having its principal office in North Carolina, or securities,which shall be held in accordance with Article 5 of this Chapter. Securitiesmay only be obligations of the United States or of federal agencies listed inG.S. 147‑69.1(c) (2) guaranteed by the United States, obligations of theState of North Carolina, or obligations of a city or county of this State. Anyproposed deposit of an obligation of a city or county of this State is subjectto the prior approval of the Commissioner.

(c)        In addition to therequirements of subsections (a) and (b) of this section, as a conditionprecedent to the issuance of any permit under this Article, every nonresidentapplicant for a permit shall file with the Commissioner a bond in the amount often thousand dollars ($10,000) in favor of the Department that is executed by asurety company licensed to transact surety business in this State. The bondshall be maintained in force during the permit period, be continuous in form,and remain in effect until terminated by the Commissioner. The bond shallexpressly provide that the bond is for the purpose of reimbursing theDepartment for expenses incurred in visiting and examining a nonresidentcollection agency in connection with a federal bankruptcy or State receivershipproceeding in which the collection agency is the subject of the proceeding. (1943, c. 170; 1959, c. 1194,s. 3; 1979, c. 835; 1991, c. 212, s. 4; 2001‑269, s. 1.3.)